The State government has announced State Advised Price of Rs. 2,000 a tonne of sugarcane for 2010-11. This includes Rs. 100 for transport cost to be borne by sugar mills. The new price will come into effect from the sugar season beginning October 1.
In addition to the revised price, linked to recovery of 9.5 per cent, sugarcane farmers would be paid incentive of Rs.14.60 per tonne for every 0.1 per cent increase in recovery over 9.5 per cent.
When the Centre announced Rs.1,391.20 per tonne of sugarcane as Fair and Remunerative for 2010-11 and linked to 9.5 per cent recovery, sugarcane farmers here felt that it was much below their expectation. They demanded the State give Rs. 2000 per tonne, taking into consideration the increase in the cost of cultivation.
Subsequently, the Finance Minister, in his budget speech, announced that the farmers' demand would be conceded from the next sugar year. The recent announcement is in line with the Minister's assurance.
For the year 2009-10, the government had announced SAP of Rs.1,437.40 per tonne linked to 9.5 per cent and an incentive of Rs.11.30 for every 0.1 per cent increase in sugar recovery with a transport cost of Rs.90 per tonne, taking the total price to Rs.1,550 per tonne. This was further increased to Rs.1,650. Now, this has been increased to Rs. 2,000, according to a G.O. issued recently.
